Alina Kalinskova told the Vot Tak TV about the procedure in case of inability to pay the loan

The World Bank estimates that due to the pandemic, the real incomes of citizens have fallen significantly due to rising unemployment and falling wages. At the same time, the share of loan arrears rose. As calculated by the Vot Tak TV online publishing,  overdue debts amounted to 889 billion rubles since the beginning of this year. However, according to the World Bank, the actual “share of problem loans on banks’ balance sheets will become clearer by mid-2021, when the remaining regulatory relief is expected to be cancelled. Vulnerabilities that existed even before the pandemic, such as the high share of bad debts (16.3%) combined with uncertainty about the duration of the second wave of the pandemic and the associated economic costs, suggest that the worst may still be ahead.”

If a person can no longer repay a loan, the best solution in such a situation is to contact the lender as soon as possible and inform them of the difficulties. If the client provides documents confirming his insolvency, the bank may make advances to the debtor and revise the terms of the loan agreement, Alina Kalinskova, a Junior Associate at Maxima Legal told the Vot Tak TV.

To read the full article (in Russian) please see the Vot Tak TV website >>>